PLEASE ANSWER BOTH QUESTIONS. I WILL UPVOTE FOR SURE. THAK YOU SO MUCH!!

PLEASE ANSWER BOTH QUESTIONS. I WILL UPVOTE FOR SURE. THAK YOU SO MUCH!!

(3 marks) Suppose you have $12,000. If inflation is 3% and you want to increase your buying power by 4% one year from now, what effective annual rate of interest do you need to earn this year? (a) 1.21% (b) 6.94% (C) 1.00% (d) 7.12% (e) 7.23% (3 marks) Millie has borrowed $80,000 to start up a small business of her own. She is to repay this amount in equal payments at the end of each month for 5 years at a nominal rate of 4% compounded monthly. How much are her monthly payments? (a) $1540 (b) $1473 (c) $1413 (d) $1557 (e) $1502